Inflation surged again on Tuesday in the United States to reach a three-year high, reflecting soaring prices at the pump as well as a sharp increase in food costs. At 3.8% year-over-year in April, the Consumer Price Index (CPI) is at its highest pace since May 2023. In comparison, it rose by 3.3% in March and 2.4% in February. Gasoline weighs heavily (+28.4% year-over-year), but price increases are widespread in the rest of the economy, from rents to airline tickets.
After a pause in March, food prices rebounded in April (+0.7% month-over-month). This increase “seems linked to energy,” with producers passing on the costs they face, says Samuel Tombs of Pantheon Macroeconomics in a note. In the land of burgers, beef is among the products causing concern for consumers-citizens approaching the mid-term elections in November. In April, it cost 16.1% more than a year earlier for a beef steak, and 14.5% more for ground meat. Signs of relief are rare, for example among car dealers (-2.7% year-over-year for used vehicles).
Opposition blames Donald Trump
“For the first time in three years, inflation is outpacing wage increases. It is a blow to middle and lower class households,” points out Heather Long, an economist at Navy Federal Credit Union. Senator Elizabeth Warren, a Democrat, criticizes President Donald Trump for failing to deliver on his promise to lower prices “from day one” of his term in January 2025. Instead, he continues to drive them up, she says. She sees the current inflation as a direct result of the president’s personal decisions, imposing multiple tariffs on imports and engaging in a conflict with Iran on the side of Israel.
In gas stations, the impact of the Middle East war continued to be felt in May. A gallon of regular gasoline currently costs an average of $4.50, compared to around $3 just before the war broke out, according to the American Automobile Association (AAA). The war, which started on February 28th, appears to be at a standstill, and oil prices remain above one hundred dollars per barrel. Donald Trump’s government reassures Americans that the economic disruptions are temporary.
